Crypto: Bitcoin Sentiment Hits Record Low As Contrarian Investors Say $60k...

Bitcoin’s Fear & Greed sentiment indicator fell to its lowest ever level, leading some analysts to suggest that $60,000 was the bottom for BTC. Does historical data agree?

Bitcoin (BTC) pushed back above $71,000 on Monday, after market sentiment indicators across the crypto market dropped to new lows.

Some analysts believed that “extreme fear” and upside liquidity may help Bitcoin hold above its yearly-low at $60,000, but others warned that weak market conditions and bearish futures volume may push prices even lower.

The Crypto Fear & Greed Index dropped to a record low of 7, showing extreme fear in the market.

More than $5.5 billion in short liquidations above current prices may fuel a rebound.

Weak price trends and rising derivatives selling may still drag Bitcoin below $60,000.

MN Capital founder Michaël van de Poppe said Bitcoin is flashing sentiment readings that have previously marked market bottoms. According to Van De Poppe, the Crypto Fear & Greed Index had dropped to 5 over the weekend (final recorded reading is 7), its lowest reading in history, while the daily relative strength index (RSI) for BTC has fallen to 15, signaling deeply oversold conditions.

These levels were last seen during the 2018 bear market and the March 2020 COVID-19 crash. Van de Poppe said such conditions may allow BTC to exhibit recovery and avoid an immediate retest of the $60,000 level.

CoinGlass data adds to the bullish case. Bitcoin’s liquidation heatmap shows over $5.45 billion in cumulative short liquidations positioned if the price moves roughly $10,000 higher, compared with $2.4 billion in liquidations on a retest of $60,000.

This imbalance suggests that an upward move may trigger forced shorts covering, leading to a BTC rally.

Source: CoinTelegraph